We see stocks rallying again (significantly) as Powell continues to hold out the prospect of rate cuts “sometime this year” in his prepared testimony before a House committee, although he made it clear that it's not there yet -> nothing new, as we predicted.
Tech stocks, which led the losses yesterday, are leading the rally in New York today. The Nasdaq 100, which closed down 1.8% yesterday, is currently significantly outperforming the S&P 500 and other global indices.
We also see the recent decline in yields continuing – another sign that the market is still optimistic that financial conditions will loosen later this year.
Powell will deliver the actual testimony to Congress at 16:00 (UTC+0), when more key labor market data (jop openings) will also be released. Data pointing to further easing in the labor market would be the ideal scenario for the (still) ongoing stock market rally. The ADP employment figures came in slightly below estimates at 140K – the almost ideal data to keep hopes of upcoming rate cuts alive.
Bitcoin remains extremely volatile and has almost fully recovered from heavy selling after hitting a new ATH. Gold remains bullish and will continue to benefit from falling yields and general expectations of strong performance for the rest of the year. We also see a rebound in oil prices (currently up more than 1.2%) as market sentiment has improved significantly.
We expect investors to take advantage of the current dip to avoid missing out on further gains. The positive momentum for US equities / especially tech stocks remains strong. In addition, we continue to expect the lesser-noticed financial and energy sectors to remain bullish.
👁 ROB'S MARKET OVERVIEW:
March 06, 2024
🌐/🇺🇸 Global Markets ↗️ (rebounding from yesterday's losses)
Cyclical / Luxury Stocks ↗️
Tech/Growth Stocks ↗️ (tech which led yesterday's losses will lead today's gains)
Financial Stocks ↗️ (Financials remains very strong / bullish)
Defensive Stocks ➡️/↗️
Energy Stocks ↗️
Materials Stocks ↗️
💱 Forex
AUD, JPY ↗️
EUR, CAD ➡️/↗️
GBP ➡️
USD ➡️/↘️ (normalization against peers continues)
CHF ➡️/↘️ (remains weak due to low Swiss inflation & high expectations for rate cut)
⚒ Commodity Markets ↗️
Oil prices ↗️
Natural Gas prices ↕️
Metal prices ↗️
Gold ↗️ (gold remains on path to new ATHs)
⚡️Cryptos ↕️/↗️ (VERY volatile; overall bullish momentum still intact)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
Your Robert
